Quantity Theory Of Money (fisher Equation) Jamb Economics Past Questions
Question 16
Lord Keynes identified three motives for holding money, that is, keeping one’s resources in liquid form instead of in some form of investment. the motive which relates to making provision for the ‘rainy day’ is known as?
- A. speculative motive
- B. precautionary motive
- C. transactions motive
- D. investment motives
- E. rainy day motive
Question 17
Devaluation of the naira as a condition for the international Monetary Fund 'loan' is considered inadvisable because?
- A. it would allowed for more money to be spent on luxuries
- B. the interest rate on the loan will increase
- C. it would decrease the demand for Nigeria's exports
- D. it would worsen Nigeria foreign exchange situation
- E. Nigerias oil would sell less in the world market
Question 18
The proportion of currency in the money supply
- A. is higher in developing countries than advanced countries
- B. is lower in developing countries than advanced countries
- C. is the same in both developing and advanced countries
- D. grows as the economy develope
- E. none of the above
Question 19
Which of the following does NOT belong in respect of the quantity of money?
- A. Durability
- B. Division into the smallest units of value
- C. Portable
- D. Identifiable by all
- E. Measure of value
Question 20
Demand for money for speculative purposes means?
- A. buying goods and services whose prices have risen
- B. keeping money for unforseen expenditure
- C. buying financial assets because of possible gains
- D. buying real estate
- E. keeping money for a rainy day
